REPORT FOR SEMESTER, ACCORDING TO C.N.V.M. REGULATION NR.1/2006

Transcription

1 Pagină1 REPORT FOR SEMESTER, ACCORDING TO C.N.V.M. REGULATION NR.1/2006 Date of the report: S.C. ARTEGO S.A TG-JIU Headquarter: Ciocarlau Street, no. 38, Tg-Jiu Telephone: 0253/226066, fax: 0253/ Unique registration code at the Trade Registry Office: Registration no. at ORC: J 18/1120/1991 Subscribed and paid-up share capital: lei The regulated market on which the issued securities are traded: BVB Bucharest ECONOMIC AND FINANCIAL SITUATION 1.a. ANALYSIS BASED ON BALANCE ELEMENTS Name of indicators ASSETS Fixed assets Tangible assets Intangible assets Financial assets Current assets Stocks Commercial receivables Financial assets of which available for sale Cash and cash equivalents Prepayments TOTAL ASSETS OWN CAPITAL AND LIABILITIES Own capitals

2 Pagină2 Subscribed and paid-up share capital Other equity items Reserves from reevaluation Legal reserves Other reserves Own actions Social Capital Adjustment Reported result ( without IAS 29) Reported result (with IAS 29) Current profit Profit Distribution Total own capitals Long-term debt Investment grants Other long-term debts Long-term provisions Total long-term debts Current debts Investment grants Commercial and other debts Short-term loans Tax and current tax liabilities Short-term provisions Total current debts Total debts TOTAL PASSIVE The decrease in the net value of tangible assets is due to the depreciation of the existing fixed assets. way: A detailed comparative situation of the company's debts is presented in the following Elements 30 june june State budget tax on profit tax on dividends tax on salaries VAT on payment - increases - penalties 2. Special fund budgets CASS average fund solidarity fund for people with disabilities - increases

3 Pagină3 - penalties 3. Social security budgets CAS ,5% unemployment ,75% unemployment ,214% accidents fund increases - penalties 4. Other taxes, fees, payments Crt. No. 1.b. PROFIT AND LOSS ACCOUNT at 30 june lei- NAME OF INDICATORS Net turnover of which Revenues from the sold production Revenues from the sale of goods Commercial discounts granted (29) (83.218) 2. Revenues from stored production Revenues from the production of fixed assets Revenues from fixed assets intended for sale Revenues from operating grants Other revenues from exploitation I. REVENUES FROM EXPLOITATION Expenditures on goods Material expenditures Expenditures on works and services performed by third parties 10. Expenses with taxes and fees Staff costs Other expenses with exploitation Expenses with depreciation and provisions II. EXPENSES FOR EXPLOITATION A. RESULT FROM EXPLOITATION - PROFIT LOSS III. FINANCIAL REVENUES IV. FINANCIAL EXPENSES B. FINANCIAL RESULT ( ) ( ) V. EXCEPTIONALREVENUES VI. EXCEPTIONAL EXPENSES C. EXCEPTIONAL RESULT (LOSS) VII. TOTAL REVENUES VIII TOTAL EXPENSES D. GROSS RESULT

4 Pagină4 - PROFIT LOSS TAX E REVENUES FROM BENEFIT FROM PROFIT F. NET RESULT - PROFIT LOSS G. Number of shares H. Output per share 0,028 0,302 The economic, financial and market activity of SC ARTEGO The absence of the possibility to achieve coherent and correct predictions led to the maintenance of the volatility of the Romanian business climate, the main trade organizations in the steel, oil and energy sectors continuing to focus on the reduction of costs and implicitly the carrying out of acquisition activities characterized by the pursuit of the lowest acquisition prices. Under these conditions, the stages of renegotiating of the commercial contracts with some companies in the above-mentioned fields were difficult and lasted much longer than the initial estimated time, which put their mark on the decrease of the volume of orders for the specific products and implicitly on the level of sales. The late approval of the budgets for 2017 for economic operators in the mining and energy sectors, postponing the launch of public procurement procedures, diminishing the funds allocated to these acquisitions, all led to a reduction in the possibility of obtaining a large volume of orders and sales level that would have been the result of winning auctions. At the same time,the unfair competition encountered in some auctions led either to an increase in the duration of the contract award,with the time needed to resolve the contestations, or to the loss of the auctions, as contracting authorities continued to opt for the award criterion "the lowest price ", which led to the passage of qualitative aspects on a second plan. This aspect of price as the only award criterion produces both favoring the presence on the market of products of a qualitatively doubtful level, as well as diminishing the market share of the company on the related niches. On the other hand, in the field of electricity distribution, for the acquisition of specific products, a number of additional criteria can be found in the awarding documentation for the legal conditions fulfilled, regarding the component of the eligibility and / or qualification documents (environment, health and occupational safety, etc.), the specific and differentiated technical conditions of the products, the required delivery terms, the ways of making the imposed payments, ultimately representing barriers that lead to the impossibility of participation and ultimately the decrease of sales potential to these organizations. In other train of thoughts, the economic turbulences adversely affects the possibilities of payments by customers, as there are large delays in the collection of the money corresponding to the deliveries, which leads to the negative impact of the cash flows and the possibilities of making payments in time to the suppliers. For the next period, the evolution on the market will be influenced by the impact that the measures that will be taken starting from July 2017 at the macroeconomic level (rising prices for natural gas, the evolution of the fuel price, the evolution of the leu / euro exchange rate, the unfolding and/or the finish of the privatization processes in the fields of rail, air transport,

5 Pagină5 the expected organizational developments in the energy field, insolvency status of some energy and petrochemical organizations) will have on the dynamics of acquisitions, investments, upgrades and maintenance. Therefore, taking into account all these aspects, if the general evolution of the Romanian economy is to be relatively stable, it is possible to maintain, in the short and medium term, the existing situation in terms of sales level and productive activity, continuing on the other hand to make efforts to ensure cash flows that allow debts to be paid to employees, state and suppliers. At the same time, it will act to identify all the available means of decreasing the income and expense difference as much as possible and for an appropriate response to the influence of all these factors that have a potential impact on the evolution on market and on the performances of SC ARTEGO SA. We mentione that the financial statements prepared on have not been audited / revised. SITUATION OF TREASURY FLOWS AT 30 june 2017 INDICATORS LEI (RON) ACCOMPLI SHED lei - ACCOMPLI SHED A. LIQUIDITY AT THE BEGINNING OF THE PERIOD In accounts Cash Other Values Treasury advances Values to receive Encashments from the exploitation activity Customer encashments Other encashments PAYMENT FOR THE EXPLOITATION ACTIVITY Provider payments Payments for staff Payments on taxes and fees

6 Pagină6 Tax / Advantage Interest payments Other payments CASH FLOW FROM THE EXPLOITATION ACTIVITY PROCEEDS FROM THE INVESTMENTS ACTIVITY Proceeds from the sale of land, fixed assets and intangible assets Proceeds from the sale of equity instruments and receivables from other enterprises Proceeds from repayment of advances and loans to other parties PAYMENT FROM THE INVESTMENTS ACTIVITY Payments for the acquisition of land, fixed assets and intangible assets Proceeds for the acquisition of equity instruments and receivables of other enterprises Advances and loans made to other parties CASH FLOW FROM THE INVESTMENT ACTIVITY PROCEEDS FROM THE FINANCING ACTIVITY PAYMENTS FOR THE FINANCING ACTIVITY CASH FLOW FROM THE FINANCING ACTIVITY CASH FLOW - TOTAL B. LIQUIDITIES AT THE END OF THE PERIOD In accounts Cash Other Values Treasury advances Values to receive

7 Pagină7 2. ANALYSIS OF THE SOCIETY S ACTIVITY 2.1. Liquidity indicators - % - Crt. Name of Calculation formula No. indicators 1. Current patrimonial liquidity [Current assets /DTS] 1,37 1,52 2. Active (fast) [Current assets.-stocks]/dts 61,39% 69,05% liquidity 3. Speed of Turnover /Intangible assets 1,13 1,24 rotation fixed assets 4. Speed of Turnover / total assets 0,42 0,48 rotation of total assets 5. Interest rate Profit before payment of 1,68 8,26 cover interest and profit tax / indicator Expenses with interests 6. Profitability Profit before interest and profit 0,0132 0,0508 of the tax / Committed capital Committed capital 7. Gross margin from sales 2.2 Capital expenditures Gross profit from sales / Turnover 2,14% 6,44% Due to the economic situation, both at the company level and at macroeconomic level, the investments in the analyzed period stagnated, the cash outflow being destined for the payment of the debts accumulated in the previous period The structure of earnings from basic activity is presented below: Revenues from exploitation -lei- Elements 30 june june 2017 Sold production Revenues from sale of goods Granted commercial discounts (29) (83.218) Revenues related to the cost of product stocks Revenues from the production of fixed assets Revenues from fixed assets for sale Revenues from exploitation grants 225

8 Pagină8 Other revenues from exploitation Total revenues from exploitation In the next period, in the short and medium term, considering the difficulty of predicting the evolution of the Romanian economy, but also counting on its possible stability, it can be estimated for S.C. ARTEGO SA. a constant trend of the existing situation as a productive activity and sales level. 3. CHANGES AFFECTING SOCIAL CAPITAL AND COMMERCIAL BUSINESS ADMINISTRATION 3.1.During the analyzed period, there were no cases in which the company could not honor its obligations to third parties, even if in some situations the payments were made late No changes were made to the rights of the holders of securities issued by the company during the analyzed period. Thus, on 30 June 2017 the structure of the shareholders is as follows: Shareholders ASSOCIATION OF THE EMPLOYEES PAS ARTEGO SC GOTERA 2012 SA TG JIU Individual shareholders Nominal value per share Number of shares held Total value % of the social capital 2, ,00 70,0428% 2, ,00 11,3094% 2, ,00 7,2430% Other legal entities 2, ,00 11,4048% THE ROMANIAN STATE THROUGH THE AUTHORITY FOR THE ADMINISTRATION OF STATE ASSETS 2,50 2 5,00 0,000% TOTAL 2, ,00 100,000% 4. SIGNIFICANT TRANSACTIONS In May 2017, SC ARTEGO SA TG JIU redeemed shares at the price of 7 lei / share in a total value of lei. SIGNATURES Chairman eng. Viorel David Economic Manager Ec. Mihai Jianu